CNBC-Volker: Fed cant wait too long to drain liquidity from the system

[Arraya]

Methinks anticipating an orderly transition of the dollar losing reserve currency is foolish.  These things are controlled by herd mentality and chaos not by levers in the Federal Reserve.

Currently, the banks are bankrupt and kept alive by fraudulent accounting as losses exponentially mount.  Credit is contracting at an alarming rate which is driving unemployment which is NOT going to subside.  Tax revenues are plummeting leading to huge shortfalls.

The world knows this and is preparing.

Obama will not be able to kick the can down the road.  Impossible.

[jtmo3]

We'll find out. I know it's contrary to popular opinion here, but I think they can keep kicking for a while longer.

[Arraya]

 I don't think it is imminent next year like some people but past 2012, no way. 

[jtmo3]

Well then we aren't to far apart then. They still have maybe two years or so, give or take, left before their arms get to tired of holding this mess up.

[unrepentantcowboy]

We're not seeing rising prices because the new money being created is not reaching the streets. It is however buying stocks, gold, etc.

There's a shortage of money on main street and there will be until the banks have repossessed the country.

Then the floodgates are opened and interest rates rise. Not unlike what happened with Volker and Carter the first time around, only exponentially larger this time around--both the fall and the "recovery" (deflation followed by hyperinflation--destruction of currency).

[Arraya]

We're not seeing rising prices because the new money being created is not reaching the streets. It is however buying stocks, gold, etc.

There's a shortage of money on main street and there will be until the banks have repossessed the country.

Then the floodgates are opened and interest rates rise. Not unlike what happened with Volker and Carter the first time around, only exponentially larger this time around--both the fall and the "recovery" (deflation followed by hyperinflation--destruction of currency).

Bingo!